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A and B are partners with the capital Rs. 50,000 and 40,000 respectively. They share profits and losses equally. C is admitted on bringing Rs. 50,000 as capital only and nothing was bought against goodwill. Goodwill in Balance sheet of Rs. 20,000 is revalued as Rs. 35,000. What will be value of goodwill in the books after the admission of C?
- a)Rs. 55,000
- b)Rs. 35,000
- c)Rs. 20,000
- d)Rs. 15,000
Correct answer is option 'B'. Can you explain this answer?
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Most Upvoted Answer
A and B are partners with the capital Rs. 50,000 and 40,000 respective...
Given: A's capital = Rs. 50,000, B's capital = Rs. 40,000, C's capital = Rs. 50,000
Goodwill in Balance sheet = Rs. 20,000
Goodwill revalued as Rs. 35,000
Step-by-step solution:
1. Total capital after C's admission = Rs. 1,40,000 (50,000+40,000+50,000)
2. Old ratio of A and B = 5:4
3. New ratio of A, B, and C = 5:4:5
4. Goodwill brought by C = 0 (as nothing was bought against goodwill)
5. Goodwill revalued at Rs. 35,000 will be divided among the partners in their new sharing ratio i.e., 5:4:5
6. Goodwill share of A = (5/14) * 35,000 = Rs. 12,500
7. Goodwill share of B = (4/14) * 35,000 = Rs. 10,000
8. Goodwill share of C = (5/14) * 35,000 = Rs. 12,500
9. Value of goodwill in the books after C's admission = Rs. 35,000 (as the revalued goodwill of Rs. 35,000 is divided among the partners in their new sharing ratio)
Hence, the correct answer is option B) Rs. 35,000.
Goodwill in Balance sheet = Rs. 20,000
Goodwill revalued as Rs. 35,000
Step-by-step solution:
1. Total capital after C's admission = Rs. 1,40,000 (50,000+40,000+50,000)
2. Old ratio of A and B = 5:4
3. New ratio of A, B, and C = 5:4:5
4. Goodwill brought by C = 0 (as nothing was bought against goodwill)
5. Goodwill revalued at Rs. 35,000 will be divided among the partners in their new sharing ratio i.e., 5:4:5
6. Goodwill share of A = (5/14) * 35,000 = Rs. 12,500
7. Goodwill share of B = (4/14) * 35,000 = Rs. 10,000
8. Goodwill share of C = (5/14) * 35,000 = Rs. 12,500
9. Value of goodwill in the books after C's admission = Rs. 35,000 (as the revalued goodwill of Rs. 35,000 is divided among the partners in their new sharing ratio)
Hence, the correct answer is option B) Rs. 35,000.
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A and B are partners with the capital Rs. 50,000 and 40,000 respective...
(b)Rs. 35000, as new partner C bought nothing against goodwill and revalued value after C's admission will be the ans.
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A and B are partners with the capital Rs. 50,000 and 40,000 respectively. They share profits and losses equally. C is admitted on bringing Rs. 50,000 as capital only and nothing was bought against goodwill. Goodwill in Balance sheet of Rs. 20,000 is revalued as Rs. 35,000. What will be value of goodwill in the books after the admission of C?a)Rs. 55,000b)Rs. 35,000c)Rs. 20,000d)Rs. 15,000Correct answer is option 'B'. Can you explain this answer?
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A and B are partners with the capital Rs. 50,000 and 40,000 respectively. They share profits and losses equally. C is admitted on bringing Rs. 50,000 as capital only and nothing was bought against goodwill. Goodwill in Balance sheet of Rs. 20,000 is revalued as Rs. 35,000. What will be value of goodwill in the books after the admission of C?a)Rs. 55,000b)Rs. 35,000c)Rs. 20,000d)Rs. 15,000Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A and B are partners with the capital Rs. 50,000 and 40,000 respectively. They share profits and losses equally. C is admitted on bringing Rs. 50,000 as capital only and nothing was bought against goodwill. Goodwill in Balance sheet of Rs. 20,000 is revalued as Rs. 35,000. What will be value of goodwill in the books after the admission of C?a)Rs. 55,000b)Rs. 35,000c)Rs. 20,000d)Rs. 15,000Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and B are partners with the capital Rs. 50,000 and 40,000 respectively. They share profits and losses equally. C is admitted on bringing Rs. 50,000 as capital only and nothing was bought against goodwill. Goodwill in Balance sheet of Rs. 20,000 is revalued as Rs. 35,000. What will be value of goodwill in the books after the admission of C?a)Rs. 55,000b)Rs. 35,000c)Rs. 20,000d)Rs. 15,000Correct answer is option 'B'. Can you explain this answer?.
A and B are partners with the capital Rs. 50,000 and 40,000 respectively. They share profits and losses equally. C is admitted on bringing Rs. 50,000 as capital only and nothing was bought against goodwill. Goodwill in Balance sheet of Rs. 20,000 is revalued as Rs. 35,000. What will be value of goodwill in the books after the admission of C?a)Rs. 55,000b)Rs. 35,000c)Rs. 20,000d)Rs. 15,000Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A and B are partners with the capital Rs. 50,000 and 40,000 respectively. They share profits and losses equally. C is admitted on bringing Rs. 50,000 as capital only and nothing was bought against goodwill. Goodwill in Balance sheet of Rs. 20,000 is revalued as Rs. 35,000. What will be value of goodwill in the books after the admission of C?a)Rs. 55,000b)Rs. 35,000c)Rs. 20,000d)Rs. 15,000Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and B are partners with the capital Rs. 50,000 and 40,000 respectively. They share profits and losses equally. C is admitted on bringing Rs. 50,000 as capital only and nothing was bought against goodwill. Goodwill in Balance sheet of Rs. 20,000 is revalued as Rs. 35,000. What will be value of goodwill in the books after the admission of C?a)Rs. 55,000b)Rs. 35,000c)Rs. 20,000d)Rs. 15,000Correct answer is option 'B'. Can you explain this answer?.
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ample number of questions to practice A and B are partners with the capital Rs. 50,000 and 40,000 respectively. They share profits and losses equally. C is admitted on bringing Rs. 50,000 as capital only and nothing was bought against goodwill. Goodwill in Balance sheet of Rs. 20,000 is revalued as Rs. 35,000. What will be value of goodwill in the books after the admission of C?a)Rs. 55,000b)Rs. 35,000c)Rs. 20,000d)Rs. 15,000Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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